Crossbench battle over renewable energy

Paul Osborne, AAP Senior Political Writer

Crossbench senators are at odds over the future of the renewable energy target, ahead of the government releasing a report on the climate policy.

The RET scheme is aimed at delivering 20 per cent of Australia's electricity from renewable sources by 2020.

The government hired businessman Dick Warburton in February to review the RET, in particular its impact on electricity prices, energy markets, the renewable energy sector, manufacturing and households.

It is understood the government has received the Warburton report and could release it within days.

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But any changes stemming from the report will need the support of Senate crossbenchers.

Palmer United Party leader Clive Palmer, whose party has three senators, announced in June his party would support the RET at least until 2016.

But Liberal Democrats senator David Leyonhjelm on Wednesday called on the PUP to back the abolition of the RET if it believed in lowering the cost of living.

Senator Leyonhjelm said Mr Palmer himself had contributed to the higher cost of electricity.

Just after the PUP leader made his announcement standing next to former US vice president Al Gore, the price of renewable energy certificates rose from $22 to $29 with the cost passed on to power bills.

"Clive Palmer claims to be a friend of the battlers, but if he continues to block changes to the RET it will send many people broke," Senator Leyonhjelm told reporters in Canberra.

In the five years to June 2012 retail power prices have risen 72 per cent on average across Australia.

The NSW senator said he was open to talks with the government on the RET.

If it wasn't abolished he could support bringing hydro power under the RET or reducing the target.

Labor and the Greens want the RET retained.

Environment Minister Greg Hunt's officials are understood to have briefed crossbench senators that the government will not scrap the RET.

Mr Hunt said earlier this month he would not prejudge the Warburton report but the coalition had a "very clear long term commitment to the renewable energy target".

The government wanted to reduce pressure on power prices but encourage renewable energy and jobs.

However a number of Liberal and Nationals MPs have expressed concerns about the impact of the RET on power prices for business and households.